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Texas Bankruptcy Exemptions
When it comes to bankruptcy, it can be a very
stressful and difficult situation to begin listing all of
an individual's assets. There are often many questions regarding
as to what can be taken and what cannot be taken to satisfy
debt. Texas is very liberal in their exemptions and there
are personal property exemptions that are available under
the Texas State law.
There is a state personal property exemption
cap. The debtor is allowed to keep a portion of their property
exempt from garnishment and attachment during bankruptcy.
The amount that is allowed to be kept depends
on the debtor's status. A single adult is allowed to the property
that he or she owns that has a fair market value of up to
$30,000. A family is entitled to up to $60,000.
Property that is subject to state exemption
includes jewelry and unpaid commissions for personal services,
which are limited to twenty five percent of the cap. The debtor
may allocate his cap amongst thirteen different categories.
Home furnishings, including heirlooms may be
claimed as exempt. Home furnishings and furnishings are given
their ordinary meaning, as they are not defined in the Texas
Property Code. Items such as portable phones and hand-held
recorders are not considered furnishings.
Food is exempt as it is required for consumption
and survival.
Farm and ranch vehicles and machinery are exempt
if farming is your means of survival.
Tools of trade including tools, books and other
items that are required for a trade or profession may be exempt.
This may also include boats and other vehicles that are required.
These items are defined as tools of a trade that fairly belong
to or usable in a trade.
Clothing and other apparel, other than jewelry,
are exempt. Some jewelry may be exempt and are dealt with
separately. Jewelry is exempt if the value does not exceed
the exemption limit.
Two firearms are allowed as exempt property.
Athletic and sporting equipment may also be
claimed as exempt. This is includes bicycles, but does not
include large items such as jet skis, sailboats or powerboats.
A two-wheeled, three-wheeled or four-wheeled
motor vehicle for each family member that holds a driver's
license or does not hold a license but depends on another
individual to operate the vehicle for their benefit may be
claimed as exempt.
Farm animals are exempt and the forage on hand
for their consumption is exempt. This may include two horses,
mules, or donkeys with a saddle, blanket and bridle for each.
Twelve head of cattle, 60 head of other types of livestock
and 120 fowl are exempt. Family pets are also exempt.
The present value of life insurance policies
are exempt if a family member or dependent of the insured
debtor is the beneficiary of the policy. The cash surrender
or loan value of a whole-life insurance policy is its present
value.
Unpaid commissions for personal services cannot
exceed 25% of the aggregate limitation may be claimed as exempt.
Current wages are exempt, except for the enforcement
of court-ordered child support payments.
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